TOP NEWS

Monday, March 17, 2003

Interview with Chuck Ames, CEO and Founder of OakGrove Systems

Chuck Ames is CEO and Founder of OakGrove Systems (www.oakgrovesystems.com), a spinoff of JPL. I talked a bit with Chuck about his company to learn a bit more about how his company spun out from JPL, the challenges of doing so, and what they're doing now.

CA: We provide Business Process Management (BPM) software that helps companies
operate more efficiently by coordinating and streamlining key activity
flows. Using our tools, Corporate IT can build and deploy managed workflows
very quickly, and adjust them as needed. Some of the world's leading
software companies, such as Plumtree Software, Sybase, The SAS Institute,
and 360Commerce, also use our technology in their products to provide
managed support for specialized flows around their applications.

BK: How did you decide to spin the technology off from JPL?

CA: We had just deployed the second major version of World-Wide-Workflow, or
WWWorkflow for short, to coordinate processes for the global network of
engineers collaborating to build the International Space Station. We were
able to link together applications, processes, and people from around the
world and help them work together more efficiently on a very complex
project, and we thought "I bet other people have this problem!" So we
changed the name of the product to "Reactor", and the rest, as they say...

BK: How long did it take you from deciding to spin off the technology
to actually spinning it off?

CA: The process took about a year, mainly due to the complexity of
negotiating license agreements.

BK: What was the most difficult part of the spinoff--and did you get
any assistance in turning it into a company?

CA: The transition from being a JPL employee to being the founder of a
JPL-technology based business is a delicate process. In order to manage
that transition successfully, you often need to navigate the constraints
and responsibilities of both positions -- responsibilities that may, at
times, be in conflict.

JPL understandably has a cautious, almost reluctant approach to
privatization. The economy benefits from Government-sponsored research
when new technologies are turned into commercial products, and JPL is
one of the most prolific producers of publicly-funded innovations in the
world. At the same time, all federal labs have to be concerned about
controversy from perceptions of misuse and exploitation of tax-payer
dollars. It's a controversial issue, and creates a real gauntlet for
the entrepreneur to navigate.

On the other hand, CalTech's Office of Technology Transfer, which is the
final gateway for JPL technology to the marketplace, was very supportive
of our efforts and served as a terrific resource for Oak Grove. In
particular, Larry Gilbert and Rich Wolf, the directors of the Office,
were a terrific resource and played an integral role in getting Oak
Grove financed and off the ground.

BK: What kind of financial backing do you have, and who are your investors?

CA: We're privately financed by Southern California-based angels and other
private investors. We have been profitable since Jan 2002.

BK: What's your own background?

CA: I'm an "entrepreneurial engineer" -- always looking for ways to use
technology to solve problems in ways that unlock value, whether that's time,
energy, money, whatever. My training as a Systems Analyst along with a
decade at JPL working on unmanned space programs -- where Faster Better
Cheaper is a way of life -- has been a good base, but building a company and
keeping it alive and growing through very tough times has been a terrific
challenge -- and a lot of fun, too!

BK: What are your future funding plans--are you intending to raise more
capital?

CA: We're currently operating profitably, but will take steps this year to
raise growth capital so we'll be ready when IT spending improves.

BK: What's has been the most challenging part of starting a company?

CA: I think every entrepreneur has to come to grips sooner or later with the
fact that it's the customer's needs -- and not the entrepreneur's vision
-- that ultimately drives adoption of new products in the marketplace.
The intellectual boldness that is required to start something new has to
be refocused on serving the customer's needs, and that can be an
unnatural act for some.

BK: Finally, what do you think has been the most valuable lesson you've
learned in taking your product from JPL and turning it into a commercial
product?

CA: Ideas are what inspire people, but persistence, flexibility, and
resourcefulness are the keys to success.